Oil producer Blackpearl cuts capital budget by 61 pct

Mon Jan 12, 2015 7:59pm EST
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Jan 12 (Reuters) - Canada's Blackpearl Resources Inc slashed its 2015 capital budget to C$31 million ($25.91 million), joining other Canadian oil and gas producers in cutting expenditures as oil prices drop.

The company now expects to produce between 8,000 to 9,000 barrels of oil equivalent per day (boepd) in 2015, down from its earlier forecast of 9,000 to 9,500 boepd.

The capital budget, which has been cut by more than half, will focus on the completion of the Onion Lake thermal project in Saskatchewan.

Brent fell $2.68, or more than 5 percent, to $47.43 a barrel on Monday, its third-largest one-day decline since 2011.

Oil prices have falling sharply recently due to a supply glut and OPEC's refusal to cut its output ceiling.

Analysts at Goldman Sachs said on Monday they expect per-barrel prices to fall to the high-$30s.

Shares of Blackpearl closed at C$0.91 on the Toronto Stock Exchange on Monday. ($1 = 1.1963 Canadian dollars) (Reporting by Tanvi Mehta in Bengaluru; Editing by Ken Wills)